ТОП-50. Исследование 2018 года
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Legal Market
Active lifestyle
For most leading players on the legal services market, the year was very active in terms of both work for clients, and in the direction of internal transformation and development of expertise. Consolidation of resources creates a good reserve to get through 2019 without incurring losses. Trends in the economy as a whole are favorable, but the constraining influence of scheduled elections will inevitably be significant.
Industrial turnaround
"We are becoming part of a larger market of professional services, in which the legal problems of clients are regarded as ‘business cases with a certain legal component’"ERNEST GRAMATSKY, PRESIDENT AT GRAMATSKY AND PARTNERS LAW FIRM, TALKS ABOUT TRANSFORMATIONS IN THE GLOBAL PROFESSION
Establishing a reputation
"We have very strict requirements on reputation issues, we need to know who we are dealing with"OLEG BATIUK, MANAGING PARTNER AT THE KYIV OFFICE OF DENTONS, EMPHASIZES
Adaptive background
"Very soon clients will pay not only for professionalism, but also for a personalized service tailored to their needs"SERHIY SVIRIBA, CO-MANAGING PARTNER AT ASTERS LAW FIRM, IS CONVINCED
Staff spurts
One of the outcomes of mergers between law firms this year was the establishment of a number of staffing records: in particular, the partner membership of a Ukrainian law firm exceeded 25 persons for the first time. The number of transitions and promotions reached a historically high level as well. At the same time, the requirements for lawyers is constantly increasing, and the list of competencies required for employment is expanding.
Fine-tuning demanded
"The considerable need for attorneys in Ukraine is created artificially" OLEH MALINEVSKIY, PARTNER AT EQUITY, STATES
Spectral analysis
Revenue growth of 20% is a fairly good financial outcome for 2018. The increase in profitability was recorded in all key market segments. But lawyers still earn in the main from resolving various kinds of conflict situations
Triple blow
The leadership in distribution in the legal market is firmly held by classical practices — judicial, corporate, and tax. They also form a triad of the most profitable market segments. The White Collar Crime practice also shot up the leaderboard in terms of generating income. Along with the continuing trend in industry specialization, the dispute resolution and corporate law practices have good prerequisites for growth thanks to legislative changes
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Editor's note
RUSTAM KOLESNIK
CHIEF EDITOR OF YURIRDICHESKAYA PRACTIKA PUBLISHING HOUSE
OLEKSIY NASADYUK
HEAD OF THT 50 LEADING LAW FIRMS OF UKRAINE ANNUAL RESEARCH PROGRAM
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Methodology
Formula for success
Top 50 Leading Law Firms in Ukraine survey: configuration of the Ukrainian legal market is based on a comprehensive analysis of the key performance indicators of law firms
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Practice Areas
Corporate tactics
In 2018 many Ukrainian companies faced the need to solve organizational issues due to introduction of new corporate legislation, primarily regarding activities of limited liability companies. Businesses which are strategically aimed at development, began to systematize internal documents in order to minimize the risks of disputes and simplify their resolution in the future. So-called squeeze out procedures became a new area of work, including for lawyers. At the same time, long-running corporate conflicts, as well as fundraising and debt repayment issues, are still topical
Investment continuation
"Investors are starting to believe in long-term stability and security in Ukraine"MYKOLA STETSENKO, CO-MANAGING PARTNER AT AVELLUM, SAYS ANALYZING TRENDS IN UKRAINIAN M&A
From public to private
"The disposition level stipulated in the Law on Limited Liability Companies allows the establishment of corporate management that meets the needs of a specific company"ANNA BABICH, PARTNER AT AEQUO, NOTES
Under the merger of events
The rise in the number of M&A transactions in Ukraine can serve as a good indicator of stabilization of the economic situation. The long hoped-for legislative changes had a certain impact on the market’s revival. However, even with the implementation of best world practices it is vital, when implementing M&A transactions in Ukraine, to take into account certain national specifics
Untuned instrument
Up till now there have been disputes in the world community as to what the difference between tax evasion and tax efficiency is. In the near future, due to global reform trends in international tax legislation, such disputes will fall into oblivion as the era of offshore companies as tools for corporate business structuring also comes to its logical end
Stop management
At first sight, the new rules on responsibility of top managers at LLC and ALC only expand the rights of business owners for dismissal of hired managers. However, they can also become an incentive for a more meaningful approach towards recruitment of managers and detailed coordination of terms and conditions of an employment agreement, primarily in terms of increasing labor remuneration as compensation for the risk of dismissal at the will of the owner and inserting financial responsibility in the event of a company suffering financial failure
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Industry Sectors
Staked on
The industrial map of the Ukrainian economy has not changed significantly. The electric power industry and IT sector, agrarian area and pharmaceuticals are traditionally at the top. A high level of business activity is observed on the real estate market. Global trends in the area of international trade make this area of Ukrainian law firms practice a topical one
Agronauts
The high level of business activity in the agricultural sector, which is one of the flagships of the Ukrainian economy, generates significant volumes of work for the legal market. But it would be an understatement to reduce the legal support of agrarians solely to transactional work or combating illegal takeovers; this is only part of a wide range of legal services demanded by agricultural companies
Bank stalemate
"Delay in the introduction of innovative financial technologies makes banks weaker in the battle for a share of the financial services market"VLADIMIR VOROBEV, MANAGING PARTNER AT QUANTUM ATTORNEYS, EMPHASIZES
Financial innovations
The rapid development of IT technologies creates demand for new digital solutions in finance. One can already notice the positive dynamics of the development of the regulatory component and substantial support from the state in the development of financial services
Turbulence laws
"Turbulence in the financial sector contributes to the transfer of liquidity from banks to development"IHOR OPADCHYI, PARTNER AND ATTORNEY AT JN LEGAL, EXPLAINS
A Healthy Future
"In order for an investor to enter the Ukrainian medical market, this market should first appear"TATYANA GAVRYSH, MANAGING PARTNER AT THE ILF LAW FIRM, BELIEVES
A sensible balance sought
"We urgently need law in the area of international trade to be reformed as a way of making Ukrainian business feel confident in the domestic market"ANZHELA MAKHINOVA, SAYENKO KHARENKO PARTNER, BELIEVES
Interests game
Any regularities in international trade are nothing more than temporary conventionalities, but trade interests are a constant thing. In the current market situation, the number one challenge for Ukraine is to maintain a reasonable balance between national interests and global trends. Serious businesses should be ready to not only increase spending on maintaining their interests on global markets, but to also actively and consistently protect the domestic Ukrainian market
Electric power campaign
"The market and the regulator have yet to establish a balance between the need for state support of a 'green' investor and the interests of consumers"ANDRIY SIVAK, PARTNER AT SHKREBETS & PARTNERS ATTORNEYS-AT-LAW, EMPHASIZES
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Dispute Resolution
Pressure from the center
The law-enforcement practice of Ukrainian courts suffered "pressure" on the part of the legal positions of the Supreme Court in 2018, although in many cases not all the judges of the highest instance agreed with them
Alternative music
"We create an ecosystem where the interests of the client are above personal ambitions, names and brands"DMYTRO GOVORUN, PARTNER OF TCM GROUP UKRAINE, SHARES THE SECRET OF SUCCESSFUL NEGOTIATIONS
Foreclosure not inevitable
New legislation provides for various ways of securing and satisfying the claims of creditors, but regulates with caution the area of foreclosure on mortgaged property. This allows unscrupulous debtors to avoid their obligations and responsibility for failure to perform their obligations. Creditors set their hopes on legislative changes scheduled to come into force from January 2019
Fine Line
"In practical terms, the question arises as to where the line is between the active position of the party and the abuse of procedural rights" VIKTOR BARSUK, SENIOR PARTNER AT EQUITY, ASSESSED ACHIEVEMENTS AND ISSUES OF JUDICIAL REFORM
Prize background
"If a law firm working with the Guarantee Fund did not get its fee, it worked at a loss"ANDRIY SAVCHUK, PARTNER AT MORIS GROUP LAW FIRM, NOTES
Illegal coverage
"As a rule, former or current business partners, competitors, and creditors orchestrate the majority of hostile takeover attempts"SAYS KIRILL FESIK, ATTORNEY, PHD IN LAW, MANAGING PARTNER AT MITRAX ATTORNEYS AT LAW
The role of farm land
"Lifting of the moratorium on land sales would provide great impetus for the sector’s development: real investors will come to us and landowners will finally be able to manage their land plots"IGOR KRAVTSOV, MANAGING PARTNER AT EVRIS LF, PREDICTS
One good bargain deserves another
"From mass disputes related to invalidation of transactions by liquidators, the market shift is now towards disputes related to bids in the sale of assets of liquidated banks"DENIS MIRGORODSKY, MANAGING PARTNER AT DYNASTY LAW FIRM, SAYS ABOUT LATEST TRENDS
Expert misfortune
Procedural innovations in terms of expert justice support have raised a number of problem issues: it is theoretically possible to require legal expertise in connection with the absolute majority of legal issues, since arguments can always be advanced as to whether some or other relations should be regulated differently, taking into account the analogy applied to them. And the refusal by a court to give a proper assessment of an expert opinion can discredit both the validity and fairness of a court ruling
Regardless of the court
"Attorneys received a wide range of procedural tools to represent interests in courts, but we advise our clients, as early as at the agreement conclusion stage, to take care of a strong position".ALEXEY KOT, ATTORNEY, MEMBER OF JUDICIAL REFORM COUNCIL, MANAGING PARTNER AT ANTIKA LAW FIRM, SHARES PERSONAL EXPERIENCE
Taming expenditure
Despite the existence of judicial practice of reimbursement of legal fees, even now it’s hard to determine the ideal formula that would guarantee their full reimbursement. Experience shows that participants of the process still face similar problems
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International Arbitration
Friendly contribution
With adoption of new procedural legislation, Ukraine, de jure, became friendlier to arbitration institutions. The adoption of a new version of the Rules of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of Ukraine also contributed to promoting arbitrability. In view of the global trend of rising demand for alternative dispute resolution, the forecast for the Ukrainian arbitration community is a quite optimistic one
Controversial image
The arbitration dispute resolution practice is undergoing comprehensive change. Competition between arbitration institutes is intensifying, although, at the same time, we can see unification of their rules. Judicial reform in Ukraine has significantly benefited the users of arbitration, but there is still ample scope for improvement, and protection of state interests increases the importance of the arbitration practice
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Criminal Law White-Collar Crimes
Accounts' dating
Legislators have always played first fiddle in criminal practice. Over the past year, they have initiated several campaigns aimed both at minimizing "coercive" pressure exerted on business (so-called Stop Masks-Show Laws No. 1. and No. 2) and on establishing protective measures against the protraction of pre-trial investigation and abuse at its initial stage — the so-called "criminal bloc" of procedural reform. But the "date" of these two campaigns in 2018 has not become a victory that lawmakers can bravely chalk up, since they failed to show the true colors of the law-enforcement system in Ukraine
The high and mighty
Modern criminal practice is characterized by complicated cases regardless of whether there’s a resonant factor in them. Usually, in such cases there is a personal financial or political interest on the part of those who have significant administrative and media resources and influence decision-making via law-enforcement agencies. The category of extraordinary complexity includes cases with an international element which are becoming increasingly "popular"
Tricky seizure
"The institute of seizure of the property of a legal entity aimed at protecting the rights of victims is often used to intimidate business or to avoid obligations"IGOR GLUSHKO, PARTNER, ATTORNEY AT GOLAW, EXPLAINS
Above suspicion
"The success of the defense project in a WCC case is largely determined by the failure to serve the notice of suspicion to the client. Behind such success, there is always coordinated painstaking work on the part of a small 'boutique' team of professionals"DENIS BUGAY, ATTORNEY, PARTNER AT VB PARTNERS, ASSERTS
Restless stop
"Abuses by law-enforcement agencies do not allow businesses to operate in Ukraine"VICTOR MOROZ, MANAGING PARTNER AT SUPREMA LEX ATTORNEYS AT LAW, ADMITS
Detection is active
By pursuing good goals, like fighting corruption and bringing national legislation into line with the requirements of the European Union, Ukraine has implemented a whole range of measures to introduce the institute of management of property acquired through criminal means. This process was marked by the establishment of a special body — ARMA (Asset Recovery and Management Agency) and the beginning of its vigorous activities. But with an eye on our Ukrainian reality, risks occurred even for bona fide property owners, whose rights and legitimate interests, as a matter of fact became, in most cases, unprotected
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Tax Practice
Reform calm
Taxation is one of the most sensitive subjects for business. But most of the initiatives that have been actively discussed this year have not yet been implemented. Meanwhile, there is a shift in priorities in current law-enforcement practice from mass disputes with the tax authorities to transfer pricing. Businesses and their tax advisors are also preparing for inevitable change due to the implementation of the BEPS Action Plan, but the update of this issue depends entirely on Ukrainian lawmakers
Scheduled readiness
Ensuring financial stability not just nationally, but also globally, is the number one task for all civilized countries. Over the past year, Ukraine has taken significant steps in this direction. And business should be preparing now for the implementation of the BEPS Action Plan into Ukrainian legislation
Master GR stroke
"GR strategy is an individually developed set of actions and measures aimed at ensuring that the State Fiscal Service considers and takes a reasoned and lawful decision on a complaint from a taxpayer".IRYNA KALNYTSKA, PARTNER, HEAD OF THE TAX LAW PRACTICE AT GOLAW LF, EXPLAINS
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Competition
Quality comes to life
This year, the economic competition defense practice has developed in perfect harmony with global trends. The focus of the AMCU’s priorities has shifted from the quantity of cases to their quality, and to the significance of the process pertinent to the ending of violations. There is a clear industry-specific differentiation of law-enforcement practice: the Committee is actively working to resolve burning issues. A lot of attention is traditionally paid to communication with business
Competitive advantage
Bringing Ukrainian competition law into line with European norms and practices, including the reform of state aid, is the task of the Antimonopoly Committee of Ukraine over the next few years. Formation of a new practice of the Supreme Court in competition cases and adoption of a clear approach by the Supreme Court in tender collusion cases are a new reality for those lawyers working in the area of competition defense.
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Regional markets
All things in moderation
Moderate business activities and slow, but sustainable, economic growth have predetermined legal business trends in Ukraine at the regional level. Lawyers acknowledge growing interest on the part of foreign investors and law-enforcement agencies. While the former interest is very positive, the latter is hardly good. The reforms implemented in the country and changes in the legislative landscape have influenced the allocation of forces in the regions. Medical law and the real estate market are developing. IT is in great demand too.
Southerly wind
"The events of the last few years are evidence of steady striving by Kyiv law firms to enter the Odessa market",ALEXANDER KIFAK, MANAGING PARTNER AT ANK LF, ATTORNEY, NOTES
Port forecast
Ukraine occupied 66th position out of 160 in the Logistics Performance Index 2018 compiled by the World Bank, which provides an evaluation of the logistics efficiency level of countries. Our country has risen 14 places compared to the previous rating. However, despite our unique logistics potential, including the sea, our country still falls short in transit cargo, with cargo turnover our ports only decreasing. This may be partially explained by the situation on the world market and the fall in Ukrainian agricultural exports. However, there are no conditions in Ukrainian ports with which to attract large private investors, and private stevedores are often exposed to systemic discrimination from the state, which has an impact on the attractiveness of our harbors.
Impulse for the future
"The market’s future lies in single-discipline specialists consolidated in teams provided with advanced information technologies and strengthened by auxiliary personnel"IHOR BAITSAR, HEAD OF THE OFFICE OF KONNOV & SOZANOVSKY IN CHERNIVTSI, BELIEVES